What Happens To Retirement Benefits In A Divorce?
Retirement benefits are considered community property and must be divided equally between divorcing parties. Unfortunately, this can get complicated. Depending on the type of retirement benefit in question and the amount involved, there can be long-term tax implications, as well as considerable difficulty in estimating the value of the assets in question.
The attorneys of The Koblin Family Law Center have extensive experience dealing with high-asset divorces. We understand how dividing your retirement accounts can affect your bottom line, whether you are three years from retirement or 30. We work hard to protect your interests and come up with solutions that will allow you to keep what is most important to you while finding compromise on property you can let go.
Important Considerations In Division Of Retirement Benefits
Any retirement asset the two of you purchased or invested in together or one of you owned separately that saw an increase during the marriage is subject to California property division laws. Many people are surprised by this during their divorce and do not know how to deal with it.
Accounts you invested in together will need to be divided equally between you. Accounts that you owned prior to the marriage must be evaluated to determine the amount of increase during the marriage. That portion is subject to division as part of the marital property.
Our lawyers understand how to use a qualified domestic relations order (QDRO) to allot each person’s share of a retirement account so when it matures, the respective portion is available to each individual. We have worked with all retirement vehicles, including IRAs, military pensions and 401(k) accounts.
Each of these accounts has its unique issues and needs to be treated carefully to ensure you have the resources you need when you retire. When necessary, we work with financial professionals to assess the value of your retirement accounts and how splitting them may affect your bottom line. We know how to draft QDROs to ensure you are treated fairly in the division of your retirement benefits.